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WEB3 CRYPTO EDUCATION
CRYPTO SAFE
STORAGE GUIDE
Cryptocurrency wallets are interoperable, so you can send crypto to anyone no matter which wallet they use.
There are many different cryptocurrency wallets that differ in important ways. You can determine if a wallet is right for you by asking the following two simple questions:
1. IS IT A SELF-CUSTODY WALLET OR A CUSTODIAL WALLET?
2. IS IT A HOT OR COLD WALLET?
Use this page as a guide to strike the right balance between Security & Convenience in the
World of Crypto & Web3.
IS IT A SELF CUSTODY WALLET?
SELF-CUSTODY
One of the innovations of Cryptocurrency is the ability to store it without relying on a custodian, like a bank. Self-custody wallets unlock the full power of cryptocurrency.
With a self-custody wallet, you are the only one with the ability to spend or transfer your money. No one can stop you, censor you, or steal from you when you use a self-custody wallet. These are also called non-custodial wallets.
CUSTODIAL WALLET
Custodial wallets are wallets where you are not in control of your money.
These wallets are more similar to the banking system where you must trust a third party to give you access to your money. If your Cryptocurrency is on an exchange, you are using a custodial wallet.
Custodial wallets can seem convenient, but the custodian has the technical ability to steal all user funds at any time.
There is a popular phrase in the Crypto Culture
"Not your keys, not your coins!"
IS IT HOT, COLD OR WARM?
COLD WALLET
HOT WALLET
WARM WALLET
A warm wallet strikes the perfect balance between hot and cold wallets, offering both security and accessibility.
It provides a higher level of security compared to a hot wallet while still allowing for relatively convenient access when needed.
Warm wallets typically involve storing funds on hardware devices or software wallets with controlled connectivity, making them a popular choice for cryptocurrency holders seeking a blend of security and convenience.
Hot wallets are connected to the internet, providing quick and easy access to your cryptocurrency.
They are ideal for frequent transactions and everyday use due to their convenience.
However, this constant connectivity makes them more susceptible to hacking and online threats, which is why it's essential to manage the amount of cryptocurrency stored in hot wallets carefully.
Cold wallets offer the highest level of security by keeping your cryptocurrency offline and away from potential online threats.
These wallets are perfect for long-term storage and safeguarding substantial amounts of cryptocurrency.
While they provide unmatched security, cold wallets can be less convenient for regular transactions, requiring more effort to access your funds.
Taking Control of Your Cryptocurrency:
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"Custodial" wallets means you have entrusted your private keys and full control over your digital assets to a third party centralized exchange.
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"Self-Custody" wallets empower you to be the sole owner of your keys, giving you autonomy and responsibility.
CRYPTO SAFE STORAGE GUIDE
Balancing Security and Convenience:
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"Hot, Warm or Cold Wallets" represents the spectrum of choices for storing your cryptocurrencies.
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"Managing Internet Risks" underscores the importance of finding the right balance between accessibility and security for your assets.
GET STARTED
WITH CRYPTO
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